Correlation Between Sysgration and Jia Jie
Can any of the company-specific risk be diversified away by investing in both Sysgration and Jia Jie at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sysgration and Jia Jie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sysgration and Jia Jie Biomedical, you can compare the effects of market volatilities on Sysgration and Jia Jie and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sysgration with a short position of Jia Jie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sysgration and Jia Jie.
Diversification Opportunities for Sysgration and Jia Jie
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sysgration and Jia is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sysgration and Jia Jie Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jia Jie Biomedical and Sysgration is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sysgration are associated (or correlated) with Jia Jie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jia Jie Biomedical has no effect on the direction of Sysgration i.e., Sysgration and Jia Jie go up and down completely randomly.
Pair Corralation between Sysgration and Jia Jie
Assuming the 90 days trading horizon Sysgration is expected to generate 2.84 times less return on investment than Jia Jie. But when comparing it to its historical volatility, Sysgration is 1.13 times less risky than Jia Jie. It trades about 0.03 of its potential returns per unit of risk. Jia Jie Biomedical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,329 in Jia Jie Biomedical on September 12, 2024 and sell it today you would earn a total of 1,046 from holding Jia Jie Biomedical or generate 78.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sysgration vs. Jia Jie Biomedical
Performance |
| Timeline |
| Sysgration |
| Jia Jie Biomedical |
Sysgration and Jia Jie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sysgration and Jia Jie
The main advantage of trading using opposite Sysgration and Jia Jie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sysgration position performs unexpectedly, Jia Jie can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jia Jie will offset losses from the drop in Jia Jie's long position.| Sysgration vs. Jia Jie Biomedical | Sysgration vs. Solar Applied Materials | Sysgration vs. Dynamic Medical Technologies | Sysgration vs. Ruentex Materials Co |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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